Brinks Company (BCO)

Short-term

Turnover ratios

Based on the provided data for Brink`s Co., let's analyze the activity ratios:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales during a specific period.
- Brink`s Co. has shown relatively consistent performance in collecting its receivables over the past eight quarters, with values ranging from 5.10 to 6.12.
- A higher receivables turnover ratio indicates a faster collection of receivables and better liquidity management.

2. Payables Turnover:
- The payables turnover ratio indicates how quickly a company pays off its suppliers.
- Brink`s Co. has demonstrated variability in its payables turnover ratio, ranging from 11.68 to 17.70 over the past eight quarters.
- A higher payables turnover ratio suggests that the company is effectively managing its payables and may have strong negotiation power with suppliers.

3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.
- Brink`s Co. has shown fluctuation in its working capital turnover ratio, with values ranging from 4.04 to 5.97 across the quarters.
- A higher working capital turnover ratio indicates that the company is efficiently using its resources to generate revenue.

4. Inventory Turnover:
- Unfortunately, no data is provided for the inventory turnover ratio, which would have helped in assessing how quickly Brink`s Co. sells its inventory.
- Inventory turnover ratio is crucial for understanding the efficiency of inventory management and the company's ability to convert inventory into sales.

In conclusion, while Brink`s Co. seems to be effectively managing its receivables, payables, and working capital turnover, further insight into the inventory turnover ratio would provide a more comprehensive assessment of the company's overall activity efficiency.

---

Average number of days

The activity ratios of Brink`s Co. provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
Unfortunately, there is missing data for this ratio across all quarters, which limits our ability to assess how quickly the company is selling its inventory and replenishing it. Without this information, we cannot determine the efficiency of Brink`s Co. in managing its inventory levels.

2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding ratio has ranged from 59.63 days to 71.50 days over the past eight quarters. This indicates the number of days it takes for Brink`s Co. to collect its accounts receivable. A decreasing trend in DSO would signify that the company is improving its efficiency in collecting payments from customers. However, the fluctuations in this ratio suggest potential issues in the company's credit policies or the timeliness of customer payments.

3. Number of Days of Payables:
The Number of Days of Payables ratio has fluctuated between 20.62 days and 31.26 days over the same period. This ratio reflects how long it takes for Brink`s Co. to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables, which can sometimes be a positive sign of effective cash management. However, a significant increase in this ratio may signal liquidity concerns or strained relationships with suppliers.

In conclusion, the analysis of Brink`s Co.'s activity ratios suggests potential areas for improvement in managing inventory levels and optimizing the collection of receivables. The fluctuations in these ratios highlight the importance of closely monitoring and addressing operational efficiency to enhance the overall financial performance of the company.

---

Long-term

The fixed asset turnover ratio for Brink's Co. has been relatively stable over the past eight quarters, ranging from 4.78 to 5.26. This indicates that the company is generating between $4.78 to $5.26 in revenue for every dollar invested in fixed assets. The consistency of this ratio suggests that Brink's is efficiently utilizing its fixed assets to generate sales.

In terms of total asset turnover, Brink's Co. has maintained a fairly consistent ratio between 0.74 to 0.77 over the same period. This ratio indicates that the company is generating between $0.74 to $0.77 in revenue for every dollar of total assets. While the total asset turnover is lower than the fixed asset turnover, it is important to note that the company is efficiently using its total assets to generate sales.

Overall, the stable and relatively high values of both fixed asset turnover and total asset turnover ratios suggest that Brink's Co. is effectively managing its assets to generate revenue, indicating operational efficiency and effective asset utilization.